Benefit from real estate’s repeatability

Benefit from real estate’s repeatability

Once you learn the basics, learning advanced skills is even easier than you might realize. You can use the knowledge you build about real estate investing to repeat the process over and over again, on multiple types of properties, increasing your profits considerably without working harder to do so. • Benefit from tax breaks – When you invest in real estate, consult with a tax professional about the opportunities that may be available to you through depreciation, in writing off certain business expenses, and through tax breaks (for example, deducting the interest portion of mortgage payments).

a.      Find investment properties and opportunities easily – With real estate investing, opportunities are all around you. You can make a simple effort, like driving through neighborhoods looking for For Sale By Owner signs, or you can do everything from establishing relationships with real estate professionals to placing your own ads to generate leads. What’s nice to know is that regardless of the time you have available, there are many easy ways to find the opportunities that will help you succeed.

b.      Market your business easily Marketing real estate is not complicated.

 c.      Everything from a For Sale sign in the front yard of a home you have renovated to an ad or direct mail campaign can bring in customers. Some investors have netted thousands of dollars in profit on deals simply because someone called them from a car magnet ad on the side of their vehicle or from a flyer they posted on a community bulletin board at an apartment complex.

d.      Build a power team to help you increase and expedite your profits – To succeed with real estate investing, you will want to establish solid relationships throughout your community and in the business… relationships with people who can help you build your business, partner with you in investments, or be available to buy your properties.

e.      A winning team of contacts would include people like a good real estate lawyer, real estate agents or brokers, an accountant or tax expert, a mortgage broker, a professional home inspector, mentors or coaches who can guide you through transactions and help motivate you, and qualified contractors, builders, and other professionals who can assist you in rehabbing your properties.

f.       Help others – One great aspect of real estate investing is you can help others in need. Consider someone who has a distressed property because they live in another state and they’re trying to manage it long distance. You could help alleviate that burden. Or consider someone who is struggling with debt and now the bank is going to foreclose on their home. You could help them save their credit. The possibilities for helping others are endless.

A MARKET FULL OF OPPORTUNITIES 

      There are not only many benefits associated with real estate, but also many opportunities for success regardless of your financial goals, location, or financial situation. Short -term and long-term strategies With real estate, there are both short-term and long-term investment strategies available to you, giving you the flexibility to make investment choices that fit your schedule and needs.

        

       A s an example, you may wish to hold properties only for the short-term, so you might purchase a property below fair market value, fix it up with minor repairs and cosmetic improvements (such as painting and landscaping), and then turn around and sell it quickly for profit. You can even purchase or contract for a distressed property at well below fair market value, and sell either the property or the right to buy the property, immediately to another investor who will do all the work improving the property. This short-term strategy is known as “quick-turning” or wholesaling properties. Individuals have made fast profits of thousands of dollars on just one deal in wholesaling a property and you can too! Additionally, investors have used wholesaling strategies to make quick cash to pay down their debts, generate extra income in addition to a fulltime job, start their own business slowly and with limited risk, and create capital for future investments.

       

        A long-term strategy might be to buy a home below fair market value and then rent it out for any number of years or lease it to someone else giving them an option to purchase it in the future. In situations like these, when you have tenants, they are building your equity because with every payment they make to you, you are taking that payment and decreasing your existing mortgage.

Source: Rich Dad™ Education